LME026 – Entrepreneur’s Rocket Fuel – Interview with Mark C. Winters

Marc C. Winters, Co-author of Rocket Fuel

Mark C. Winters, Co-author of Rocket Fuel

Today we talk about why it needs not just one but two entrepreneurs to build a successful business and why it is essential that these two have dramatically different roles.

I will talk about this with Mark C. Winters who is the co-author of the book rocket fuel.

If you are an entrepreneur or you work for a small business, this interview may be an eye opener for you.

Listen to the podcast version

About a year ago a friend of mine told me about a book called “Rocket Fuel”. He said:

“Bernd, you need to read this.”

I was amazed to hear that and wanted to know more about it.

The situation of my entrepreneurial friend

My friend told me that by reading the book he finally understood why he has been frustrated with his company over the last years although from outside he was a successful entrepreneur.

In less than 5 years he has built a company with 30 employees. The company was well positioned in the market and – at least from outside – quite profitable.

Working 24/7

But he was working his butt off. He was working more or less 24/ 7.

Of course he was passionate for his business, but taking care about the day-to-day work, the nitty gritty details that was frustrating for him.

He complained about his employees. They were not working on the right things, they didn’t understand quickly enough what he wanted from them. He had a lot of great new ideas for new products, for new marketing and sales ideas but in the day-to-day business he didn’t find the time to work on them.

His solution: Rocket Fuel

He told me, when he read the book Rocket Fuel he finally understood the reason for his frustration. He understood his role in the company. He told me:

He is the visionary. That’s the leader who should focus on new ideas and on new products, on product improvements and on customers. But this was not what he was doing most of his time. He wanted to spend more time in his role as a visionary.

But to do this, he needed someone who could do all the day-to-day work, who focuses inside the company. A person with this role is a so called integrator.

The two roles in a business

In the book Rocket Fuel the two authors describe these two roles:

“The visionary possesses a pioneering spirit that seizes market opportunities, dreams big, and inspires people behind a common vision. Visionaries notice problems in the word and find ways to solve them. They are a continuous source of new ideas.

The integrator is a realist. Integrators ensure commitments are kept, deadlines are met, and resources are managed. Integrators align resources to make the visionary’s dream a reality.”

The two roles  – the visionary and the integrator role – are vital to building a great company.

The problem of a lot of entrepreneurs

The problem is, that rarely one person can fulfill both roles. Normally an entrepreneur starts a company because he or she is an entrepreneur and a strong visionary.

But mostly after some time one or more of 5 frustrations kick in. Marc C. Winters and Gino Wickman, the authors of Rocket Fuel describe these 5 frustrations of a visionary as follows:

  1. Lack of control

You started the business so you can have more control over your time, money and freedom, but once you reach a certain point of growth, you realize that somehow you actually have less control. The business is now controlling you.

  1. Lack of Profit

No matter how hard you work, the numbers just don’t add up.

  1. People

Nobody seems to understand you or do things your way. You’re just not on the same page.

  1. Hitting the ceiling

Growth had stopped. The business is more complex, and you can’t figure out exactly why it isn’t working.

  1. Nothing is working

You’ve tried several remedies, consulted books and instituted quick fixes. None of these have worked for long.

The solution is: You – as the visionary – need to embrace your visionary nature and you need to get an integrator on board.

“The integrator integrates the major functions of the business, run the organization, and manage the day-to-day issues that arise. The integrator is the glue that holds the people, processes, systems, priorities, and strategy of the company together.”

Rocket Fuel describes the roles of the visionary and the role of the integrator in detail.

It focuses on how to find an integrator and how the visionary and the integrator can successfully work together. As you can surely imagine, it is not easy for a visionary to hand over responsibilities and decisions to the integrator. But this is crucial in order to work successfully together. Only then the integrator can do his job.

Find my interview with one of the authors of Rocket Fuel: Mark C. Winters in this podcast episode:

 

 

If you want to go fast, go alone. If you want to go far, go together.

Author unknown – quote from Africa

LME025 – Leading in times of crisis

Today we will talk about how to lead in times of crisis.

How can you control the chaos? How you can stay calm and positive with in the storm and how can you engage the hearts and minds of your people in tough times.

Sounds interesting? – Read on!

Listen to the podcast version


I am writing this in the beginning of April 2020.

It is unclear whether we are in the middle of the crisis or just at the beginning. Our public life is becoming increasingly restricted due to the corona virus. There are shutdowns, lockdowns and we all have to reduce our social contacts to a minimum.

Governments worldwide are trying to mitigate the impact of the pandemic on healthcare systems to slow down the spread and save time. Will it work? I hope so, but nobody really knows.

What does that mean to us?

How can we control the chaos?

Can we control the chaos?

I believe, you can’t control what comes from outside, but you can control how you react.

Let me give you my 3 ideas how we can deal with the chaos.

1. Self awareness

I believe it is most important that you have a clear understanding of your personal strengths and values. It’s important that you have your own compass heading in the right direction.

You need to be clear on: What do you stand for? What motivates you? What is really important to you? If it is money than think twice.

And I also mean if you think money gives you security. Be careful. How much money do you need? 10.000, 100.000, 1 Mio, 10 Mio? What will happen if we suddenly face an hyper inflation? Your money is gone like that. Will money really help? What happens if you become ill and there aren’t any beds in the ICU’s for you?

I personally believe: What really is important: that’s people. Take care about others. Take an active role and help others especially in times of crisis. So, think about what is most important for you and what do you stand for?

2. Have an infinite mindset

My next impuls I got from Simon Sinek

“Have an infinite mindset! You are in for the long term.”

What does it mean?

Times like this are especially tough for people who love clear structures and high planning security. They love to have a detailed plan and a clear goal, for example reaching sales of 1 million Dollars. That’s the opposite: It is a finite mindset.

In times of crisis this thinking doesn’t help. You need to be much more agil and you need to think in the long run. Having an infinite mindest means that you have aclear why. Why you are doing what you are doing. You know what you stand for and you have a vision. A vision is always emotional and it is vague. It is a great picture of a better future. It is not a clear plan.

In times of crisis this helps a lot. In that way your mind can adapt more quickly and is not bound to your detailed plan. You may work with a short term plan and change depending on the situation, but with your vision you have an understanding where you want to go.

3. Think in scenarios and have contingency plans.

We don’t know, what happens in the near future. But we can think about different scenarios.

What we know can do is to prepare for these different scenarios. We have plans for the different scenarios and we assess the regularly short term, which scenario becomes more likely to happen – and based on that we adapt our actions.

In crisis it matters most how you think and feel. Do you believe you are in survival mode? Or are you in a reinvention mode?

You can ask youself:

“How do I get thru this?”

or you ask:

“How do I gone a change to get thru that?” 

A German collegue of mine – Lars Vollmer – was on spot when he said:

“Change is great – but to be changed is terrible!”

So, in times of crisis it is better to have an active role and accept to change, change what we do, change goals – not the long term vision and change business models.

A good example for this is the German entrepreneur Wolfgang Grupp. A few days ago his company Trigema changed a big part of the production from producing shirts to producing respirators. With this change he helps our healthcare system and it helps his company to survive this crisis.

My piano teacher changed his business model from teaching in school rooms to teaching online.

How can you stay calm and positive with in the storm?

Last Sunday I send an E-Mail to my German E-Mail list of about 8.000 managers and entrepreneurs. I asked them: “What is your biggest challenge today in this crisis?”

Several hundred of them answered with partly very detailed comments.

There were 3 major types of situations they were describing:

  1. The problem working at home and leading out of the home office. This is a struggle, but their jobs are still save.
  2. Right now working around the clock. Very stressful because things inside the company need to be organized. But the company is still doing ok for the next 2-3 months.
  3. Survival mode. These people, mostly entrepreneurs or solopreneurs don’t know how to pay the rent. There business model collapsed. Their sales is zero and they don’t have savings. They don’t know how to proceed with their business in the next weeks.

The more you are in the situation of category 3 the more you need to stay calm and positive in order to be able to see opportunities and in order to find other business models.

For them I have the following tips, I try to use for myself as well.

Get enough sleep!

Sounds obvious, but is so important: “Get enough sleep!” Only then, you are able to think properly.

Take an active role.

Don’t stay passive. Even if you think everything collapses, stay in the driver seat. That means have a clear structure or your day. Get up at the same time.

Don’t watch Netflix all the time. Help others. Work on things which you always wanted to do. Get in touch with others.

Stay focused.

Don’t listen to the news all the time. Habe maybe 1 hour a day to watch the news and scroll your facebook feed, but then stop that. Go to work or do something productive.

Regularly take your time to keep the overview. Where do you stand? Think about the different scenarios and watch out for opportunities. Then go back to work, focusing and and talking with others to get inspired.

And on last impulse her:

“Things are mostly not as bad as they seem!

How you can engage the hearts and minds of your people?


During a crisis like this, there is uncertainty. And for many people uncertainty leads to fear.

Fear that relatives could get infected, fear of losing the job. What is going to happen? What is going to happen to me now, to my family?

In addition, there are all sorts of news: special programs on TV, real news as well as fake news on social media channels and, and, and. Uncertainty and fear are growing.

In fact, nobody knows what’s coming. Will the crisis be over in 2-3 months and everything goes back to normal? Or will it take years and there will be a great depression like in the 30s?

Nobody knows. Everyone is looking for answers.

What do your employees need the most?

So what do your employees need the most now – in this situation?

It’s trust. Trust in you as a manager. Trust that you take on responsibility, that you speak openly and honestly, and trust that you make decisions to the best of your knowledge and belief and that you are there for your employees.

How can you build trust now?

Take care of your employees. If possible, speak to each of your employees.

It is about dealing with fear and uncertainty and stilling your employees fears wherever possible.

Ask your employees how they are doing, what they need right now. If you work at your home office, make a call or skype.

Take the time to respond to fears, whether private or work related. I know it’s not easy, especially when you don’t know how to proceed. When you are afraid and feel insecure yourself.

Now it is important for you not to hide and not to stay in the background. Take on the role of the one who leads, who helps others. If you actively take on this role, it will also help you to better deal with your fears.

Explain to your employees what your view on the situation is and which decisions you are making or will be making and above all: explain why you do these things.

What matters now?

  1. Don’t shy away from telling the truth. Don’t beat around the bush.
  2. Only promise things that you can keep.
  3. Be totally clear about what you know and what you don’t. At the moment everyone is looking for answers.
  4. Explain scenarios: With regard to the future, explain possible scenarios and how you and the company are likely to respond to them. Also clearly state what that would mean for your employees. Don’t downplay the situation.
  5. Take responsibility for your decisions.

What does taking responsibility mean?

You are now making a decision to the best of your knowledge and belief. In retrospect, it can turn out to be wrong decision. That can happen, but it is always better than not making a decision at all.

The important thing is: take responsibility for your decision but also apologize afterwards:

“Yes, I made the wrong decision ..”

Stay optimistic.

Try to be a bastion of calm.

If you act like this, then you are credible. Then you have a great chance that your employees will trust you. If you are totally clear about what is going on when you address the fears, it will help your employees to deal better with fear and uncertainty.

Are all of your employees going to trust you this way?

Probably not. In a time of crisis we can distinguish between 3 types of employees:

1. Promoters

There are employees who have always put complete trust in you. They are your promoters. They think the same way you do and they have the subjective conviction that you are doing or will do exactly the right thing.

2. Skeptics and doubters

The second category, those are skeptics and doubters. They are unsure as to what extend they can trust you. It is particularly important to get these employees on board with you and to convince them that they can trust you during this crisis.

3. Opponents

Theoretically, you can do whatever you want. You will never convince them that you are the right person, that you are doing the right thing and that you can be trusted.

If you work in a small company and have a good working atmosphere, there is a good chance that you will not have a Category 3 employee. This is unlikely in larger organizations.

You will have to deal with all three categories, but focus on the Skeptics and Doubters.

If you want to be a leader…

If you’re a leader, don’t hide, but take responsibility. Help your employees and be the one they can trust. In times of crisis the true character of a person is revealed – or, put it that way, a crisis builds the character.

 

The inspiring quotes

“Everything is going to be fine in the end. If it’s not fine, then it’s not the end.”

Fernando Sabino

How to deal with email overload – Productivity hacks for managers and leaders

email overload

Email overload!
Image: 3dfoto/ Resource: www.bigstock.com

Do you suffer under email overload?

Are you a business leader and process more than 100 emails on daily basis? Then you are making a mistake!

Your email habits reveal whether you are true leader or simply an overburdened micromanager. It is under your direct control.

To lead is to determine the direction, to maintain control and to inspire employees. You can only achieve this if you focus on the important issues and rigorously delegate tasks.

This also means that you should not be informed about everything at any time of day. You should also not be controlling all transactions in your company and this means you should be very picky with spending time on your emails.

Listen to the podcast version

My experience with emails

To be honest: I did and even today I‘m still not really an expert with working on my E-Mails.

But over the years as a manager and as an entrepreneur I have learned some tricks and E-Mail habits, which helped me a lot to get better with emails.

Today, I still receive a lot of emails, but I don’t spend such a big amount of time on them any longer. Today, with emails I am more productive than ever. Also there is always room for improvement…

Why do so many managers suffer from email overload?

The question is: Why do so many managers constantly read their emails? I think these managers are afraid they might miss something.

Or they may feel the need to demonstrate that they are constantly reachable. What a bunch of nonsense and what a waste of time!

I am actually aware of general managers who expect their employees to respond to an email after no more than 20 minutes. These are the same general managers who process emails during meetings on their laptop or their smart phones.

What is the point of this? If brain research has taught us anything in recent years it is that multi-tasking is neither effective nor efficient.

I can either process my emails, or I can participate in a meeting! If the meeting is not important, why the hell is the leading manager present at the meeting? If the meeting is useless, why not cancel it?

When should you read your emails?

Simple rule:
Only read your emails at fixed times, once or twice a day, for example at noon and at 4:00 p.m.

Otherwise, your email software should be shut down. – And turn off the email notification sound on your mobile phone!

I assure you: Urgent and important issues will not be sent by email. If someone has an urgent matter for you that is also important, they will always contact you in person, or they will call you or your administrative staff.

Believe me: You will not be notified by email if your house is on fire.

How can you process your e-mails efficiently?

I find David Allen’s “Getting it done”, or GTD method for processing emails very helpful. The idea is to keep your incoming mail folder as empty as possible. It is often refered to as “Get an empty inbox!” or “Inbox zero”. The underlying principle behind this:

Take the following steps when processing your emails:

1. “Doing”
Read the email. If the email you have just read requires you to perform an action, and this action will require less than 2 minutes, then take care of it right away!

2. “Delegate”
If an action is required, but you are not necessarily the one to handle the matter, then delegate the task.

3. “Delete or file”
If processing the email will require more time, then place it in your To-Do folder. If no action is needed, but you want to keep the email, then save it to another folder. Otherwise delete the email immediately.

This approach has the following advantages:

  • You only need to process our emails once or twice a day.
  • Each email is only opened once.
  • You inbox is orderly and largely empty.

How can you receive fewer emails to escape email overload?

According to Prof. Jacob Palme, it takes 4 minutes on average to write an email, but only 30 seconds to read an email.

Therefore, if every email had only a single recipient, people would spend 90% of the time allotted to email with writing and only 10% on reading.

But the reality is completely different. Many emails are not only sent to one, but rather many, and some even to a large number of recipients.

You should therefore change the email culture in your company! Let your employees know:

  • Stop sending “CYA” emails!
    If you have established a leadership culture based on trust in your company, then your employees should not feel the need to constantly send emails with a host of “CC” and “BCC” recipients.
  • Avoid the button: “Reply-to-all”!
    There is rarely a need to “reply-to-all” when responding to the original email.
  • Only reply if really neccessary!
    Emails should only be replied to if it is really necessary. Forwarding should be well considered!
  • Don’t expect a reply on the same day!
    Nobody should expect that an email receives a reply on the same day!

And for your personal use:

  • Cancel all newsletters that you do not read anyway!
  • Do not send emails with an automatic read confirmation!
  • Always keep in mind: The fewer emails you send, the fewer emails you will get.
  • Let your employees know that you only want to receive important information by email.

How do you write an email properly?

If you want to avoid email overload, formulate your emails politely, but be brief, clear and precise. An email should best only contain one topic. The topic should be clearly stated in the subject field. This ensures that the purpose is clear without opening the email.

A well formulated subject entry is:

“Meeting on 1st March at 9 am?”.

However, a less helpful subject entry would be:

“Meeting proposal”.

Direct conversation instead of email

With an email there is always the danger that the recipient may misunderstand your intentions, your ironic comment, or the context. This can result in problems or unnecessary escalations.

Some email exchange can get out of control this way. This leads to frequent back and forth. It would be better instead to seek a face-to-face exchange or to briefly call by telephone, and to resolve the issue.

Emails cannot replace direct conversation! Always ask yourself:

“Would it be easier to solve my problem in a personal conversation?”

If so, simply pick up the phone or meet the person directly. I assure you: This is an important point to avoid email overload.

The inspiring quote

Any email that contains the words ‘important’ or ‘urgent’ never are, and annoy me to the point of not replying out of principle.

Markus Persson

 

LME023 – How to become a better manager at work.

If you want to know how to become a better manager at work, you are at the right place. I’ll show you my 3 best tips. They help you to have more productive and loyal employees. Furthermore you to will become more productive and get a higher job satisfaction.

Sounds interesting? – Read on!

Listen to the podcast version

 

The human factor

As a manager today, it isn’t enough to just simply focus on results and the financial bottom line. Today you need also to have good human skills to be successful.

What are human skills? Great that you ask!

I found it very helpful, how Simon Sinek puts it in his video
“What Business Can Learn From the Military“:

 

“There are no soft skills! There are hard skills and human skills!”

Simon Sinek

 

I believe he‘s on spot. Job satisfaction and job productivity of a manager as well as of the employees is directly tied to the human skills of this manager.

Several studies have shown that focusing on both – human skills and hard facts – yields better financial results for a company: https://hbr.org/2015/12/proof-that-positive-work-cultures-are-more-productive

What can you do?

How can you become a better manager at work? There are lots of tips out there – and a lot of them are helpful and important. For example: Learn to delegate, don’t be a micromanager or create a positive work environment.

My 3 best tips to become a better manager.

These 3 tips are simple but that doesn’t mean that they are easy to implement. But I promise, if you work on them, you immediately will see positive results. Let’s dive into the 3 tips:

1. Lead more and manage less

I know many CEOs who work around the clock and still feel they don’t really do their job. Many are trapped in the rat race of day-to-day operations. They work a lot on management tasks, but they don’t take enough time for leadership.

In my view, there are several reasons why managers think they don’t have time for leadership. The biggest challenge can be summarized in one sentence:

Leadership is important, but rarely urgent!

Developing a business strategy, talking to an employee, discussing the vision statement, thinking about customer benefits or improving processes – all these are leadership tasks – and they are important, but they aren‘t urgent. They don’t have a deadline.

Leadership tasks don’t have a deadline.

If you develop the strategy today or tomorrow, will not be a big difference. If you have this one-on-one meeting with your direct report today or only later next week, this doesn’t change the bottom profit line, does it?

In contrast, management tasks are usually urgent. They have a deadline. But are they always important? Not really.

The solution?

Since leadership is usually important but not urgent, we postpone it. Therefore, let’s outwit ourselves.

Set fixed deadlines for leadership tasks in your planning and put them into your calender and your ToDo List. This automatically makes your leadership tasks urgent and helps you to lead more and manage less.

2. Talk about your expectations

You want your employees to act and behave in accordance to your interest and expectations. They just should make the right decisions if you are not there and if they can’t ask you, right?

Now, How can they know what you expect from them? Correct. You need to tell them. But be honest.

Are you talking about your expectations?

What exactly are your expectations? I experienced that very few employees know exactly what is expected of them. And the reason is usually: Their boss hasn‘t communicated it clearly.

Do you think your employees know about your expectation? I doubt.

My tip: Write down on a piece of paper what you expect exactly from your employees. Just start with your values, for example:

  • Do you expect your employees to be on time? Then write down Punctuality.
  • Do you want loyal employees? Write it down.
  • Do you expect them to reach goals? Write it down.
  • Do you want them to focus on customer satisfaction? Write it down.

You may say:

“Yes, of course. That’s all important. That’s self-evident, isn’t it?”

But it’s not that simple. You have to set priorities and communicate them. It’s not just enough to tell your employees what is important and how to behave.

You need to tell them your priorities.

Otherwise how should they know what to put first? Therefore, set priorities for your expectations and values. Ask yourself: What is more important to you?

For example, is being on time more important than quality? Has customer satisfactiona higher priority than achieving a sales target?

Perhaps you say now:

“Well, that depends.”

Oh. Really. It depends. So make it clear: On what does it depends?

When should your employee focus more on qualty instead of being on time? If you don’t tell it to your employees how should they know? How should they act and behave in your best interest if they don’t know your expectations?

3       Listen actively

You want to understand – really understand – what your employee thinks. Therefore, you listen, you paraphrase and you reflect back what is said.

It is important that you withhold any judgment and advice when you listen. You want to understand and learn your employees perception and standpoint.

I know some managers have problems with listening. They think if they hear something they don’t agree with they must respond right away. But that’s not true.

Always remember:
When listening actively you want to understand but to understand doesn’t automatically mean that you agree.

One mouth but  two ears

Have you noticed that most humans have two ears but only one mouth? We are created like this to listen more and talk less.

My bonus tip

Focus on constructive feedback. It‘s so important if you want to be a good manager and a great leader. Therefore, click here for my video on how to give feedback to employees:

The inspiring quotes

“Great leaders are willing to sacrifice the numbers to save the people.”

Simon Sinek

LME022 – What is the purpose of a company?

What is the purpose of business? What is the purpose of a company? Most people don’t seem to have much trouble verbalizing the response to this question:

“That’s obvious: The purpose of a business is to make a profit!”

But that’s not true!

Listen to the podcast version

The purpose of any business

When you ask a shareholder this response makes sense. To him, it’s important that the company, into which he invested, makes as much profit as possible. This increases the company value, or a dividend can be paid out.

In both cases, the capital invested by the shareholder increases, and this is what he cares about. This is easily understood, but that does not make generating a profit the purpose of a company.

Purpose of a company

Purpose of a company:
photo: Dean Photography/ resource: www.bigstock.com

Is the purpose of a company to create jobs?

But If you ask a union representative, or a socially oriented politician, he will probably tell you:

“The purpose of the company is to create jobs, and to retain these over the long-term.”

This also makes sense, but here as well: To create jobs is not the purpose of a company.

Customer value?

The sole purpose of any company is to satisfy the needs of customers. A company that does not provide a value to its customers will have no customers over the mid-term. Why should customers be expected to buy from this company?

Over the near-term, a company can survive without customers. Over the mid and long-term a company without customers has no reason for being, and no chance of survival.

Profits and employees?

This isn’t to say that profits and employees aren’t important. Both are needed to fulfill the purpose, i.e. to create value for the customer. They are a means to an end.

A company cannot survive without at least making a profit now and then, because it will not be able to invest into its future and the future value added for its customers. A company can therefore only be of benefit to its customers over the long-term if it is profitable.

This is similarly true for employees and their jobs. To provide value to the customer with services and products, practically every business needs employees. For this reason, it must create enough jobs to satisfy the needs of its customers. Not more, and no fewer.

Might I be splitting hairs?

You may think:

“That is splitting hairs. It makes no difference whether profits and employees are the means or the purpose of a company, right?“

By no means. This is critical to how you as the entrepreneur and manager think about it. Your attitude about this has a huge impact on the company success. The following example should highlight the point:

The self-employed programmer Thomas

Three years ago, Thomas became self-employed as a software developer. He wanted to be independent and make more money than he could in his previous employment.

As a recognized specialist for the programming language C++, he can now charge a comparatively high hourly rate for his work.His customers are happy to pay, because as a certifiable expert, he delivers outstanding programming work. He has therefore accomplished his goal to be independent, and to make good money.

Let’s assume that he defines “making lots of money” as the purpose of his one man enterprise. He therefore places the focus on money. This puts him in jeopardy of relying on his expertise and skill, and resting on his laurels.

But now, the requirements of his customers for his programming work are slowly beginning to change. He is reluctant and late to recognize and acknowledge this. After all, he’s focused on making as much money as possible, and not primarily on understanding the needs of his customers.

Over time, things are getting increasingly difficult for him, since C++ is no longer the predominant programming language called for. He has failed to adjust to the changing needs of his customers in a timely manner. His business is in decline, his revenues are dropping, and his customers no longer want to pay the high hourly rate. That’s too bad.

If he had regarded the purpose of his company as providing his customers with the highest possible value, he would have spent time early to study his customers and the solutions useful to them. He would continue to be a recognized partner for his customers, and his customers would continue to pay his high hourly rate.

Purpose and focus of your company

If your company is in a critical situation, it may be necessary over the short-term to focus on maximizing profits and quarterly results, instead on customer value. But over the long-term such an orientation is always disastrous.

The purpose of a company is always to provide value to its customers – and it is therefore clear that this must be the focus of your company. Your business vision statement as part of your business strategy should reflect the purpose of your company.

Purpose and Vision Statement

The inspiring quotes

“Every product and service is sold on the promise of a better future. The purpose of business is to deliver on the promise, and profit is the reward for doing so.”

Patrick Dixon

“Winners are people with definite purpose in life.”

Denis Waitly

LME021 – How to motivate employees in the workplace

Your employees don’t contribute, they lack motivation, but they are always looking for better pay? I’ll show you how to motivate your employees.

Listen to the podcast version:

View the video version:

How to motivate employees with money

Money may be attractive, but it has no sustained impact on employee motivation nor on employee commitment!

Please don’t take this the wrong way. If you don’t pay your employees an adequate income, then you’ll demotivate your employees! They will not be commited to work for you.

But the inverse conclusion will only work on an exception basis: If you pay an above average income, this will by no means result in your employees being more motivated or more commited over the long haul.

Intrinic and extrinsic motivation

There is an important difference between intrinsic and extrinsic motivation. What the difference is and why you need to have intrinsically motivated employees you can read here: How employee motivation really works!

You need intrinsic motivation

Intrinsically motivated people have 3 characteristics:

1. Desire for self-determination

They want to work independently on a task with the greatest possible elbow room.
This means for your employees: Tell them about the goal, but give them the freedom to decide how they reach the goal.

2. Strive for excellence

Intrinsic motivated people want to grow with the task. They want to continue improving themselves on an issue that they feel is important to them. This means: Hepl your employees to become better in what they are doing. Help them with your feedback and offer them training.

3. Purpose

The things they do must have a purpose. In performing their task, they want to be part of something larger than themselves.
Talk about the company vision. Talk about the why. Why are you doing what you do. Why should they care to work for you?

The funny thing with intrinsic motivation:

If you take care about these 3 points you automatically take care that your employees don’t get demotivated.

Assume that your employees are motivated – at least when they start working for your company. What happens mostly is that people get demotivated over time by buerocracy or a bad boss.

Therefore: Your task as a leader is not to learn how to motivate employees. Instead, tell them about your business vision and the why and take care that you don’t demotivate them!

 

The inspiring quote

“The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet.”

Theodore M. Hesburgh

 

LME020 – No1 feedback rule

No1 feedback ruleAs a manager, you should give your employees regular feedback. I will give you my most important  tip, my No1 feedback rule on constructive feedback.

Listen to the podcast version

My experience with feedback

As a CEO of my own company as well as a manager in an international group, I was able to gather some experience through feedback worldwide – in all kind of cultures and all kind of company sizes.

Over time, I’ve developed a sense for feedback. I learned how valuable contructive feedback is and how it helps others. But I have also noticed how devastating well-intentioned but incorrectly formulated feedback can be – both in terms of employee motivation and behavior.

The crux with critisism

Everyone loves to be praised and to be confirmed. Who doesn‘t like to be praised?

With criticism, on the other hand, it’s different. If someone asks you,

“Do you mind if I give you some feedback?”

You’ll probably say

“No, of course not!”

… and you ask for the feedback. But deep inside of you, it’s hard for you to hear negative feedback. And let’s face it: it will be negative.

If someone explicitly asks for permission to give you feedback, he doesn‘t just want to praise, he mostly wants to criticize. But criticism questions our self-esteem. It triggers our defense mechanisms, because we believe our reputation is in danger. Actually, we want to be praised, but not judged.

That’s why when you give feedback, it’s less important what you say than how you say it.

My number one rule or if you will my number one tip for contructive feedback is:

The No 1 rule: Feedback is a gift!

Always view feedback as a gift: whether you critize or you are critized.

A gift usually has a nice packaging – this is no different with feedback. For example, it‘s the way you express criticism. Criticism should be clear, but appreciative. If it‘s not, then there is a good chance that it will not be perceived as a gift.

But especially for the feedback taker this attitude is crucial to see feedback as a gift.

Feedback to the boss

Let’s assume that an employee approaches his boss and tells him in private:

“Boss, in the meeting right now. Well, what you told the staff was not so well received.”

Now it’s extremely important how does the boss react to such a critic.

The employee dared to give the higher ranking person – his boss – feedback on his behaviour and on how it was perceived by the staff. Doing this requires courage.

Why did the employee do this? He wants to signal to his boss that something has gone wrong. He suspects that his boss isn‘t aware of this at all. With this feedback, the employee wants to help his boss to assess the situation correctly.

It‘s a gift to the boss.

And now it depends on how the boss reacts. When the boss says:

“Yes, yes, I know what I said, but I did it because I wanted the staff to understand and to think about what we need to do and that it is done in the right way and…”

Blablabla… If the boss defends himself directly after he was critisized, then this is unfavorable. He doesn’t really accept the gift. He takes it as an attack and defends himself.

However, the employee only wanted to show the boss his point of view.

“Here dear boss, something went wrong. What you said was received in a way you may not wanted it to be received.”

It would be much more favorable, if the boss would react with

“Thank you for the feedback. I’m glad you told me. I have to think about that.”

So he really accepts the feedback as a gift.

Two most important words: “Thank you”!

Very important here: What do I do if someone gives me a gift? Exactly he says „Thank You.“

The boss can ask:

“Thank you for your feedback. What exactly did I say in the meeting what came out wrong?”

Then the employee can answer:

“Yes, boss, you know, you said we’d just skip lunch today. That wouldn’t be a problem, but it was received quite badly that you didn’t explain why we had to skip it.”

It’s okay to ask such questions to really understand the criticism. But the boss should not evaluate and justify the employee’s statement at that moment. He should accept it as it is meant. As a gift: He receives a foreign view on his behavior.

Try to really understand the criticism!

Unfortunately, most people take a defensive stance when giving feedback – even today, I still sometimes feel the same way.

But it is unfavorable. Because it can lead to the fact that the employee decides the next time not to give feedback to the boss:

“I’d rather keep my mouth shut. The boss always knows everything better anyway. Before I get involved in discussions with him, I’d rather not say anything …”

What a pity. Whether you are the boss and get criticised or you are an employee and get feedback from your boss, always keep in mind:

If you receive feedback, try to really understand it and take it as a gift – even if it is rough on you or does not come across as very appreciative and even if you don‘t agree with it at all.

If I’m criticized and don’t agree with the criticism, I try to listen carefully. I don’t always succeed but at least I try. The reason for that is the saying:

“Often a feedback says more about the person giving the feedback than about the person being criticized.“

So, if I listen well, I at least learn something about the other person’s point of view. I try to understand him or her.

And always keep in mind, if you do so:
If I understand the other person that doesn‘t mean that I agree!

 

The inspiring quote

Feedback is a gift. Ideas are the currency of our next success. Let
people see you value both feedback and ideas.

Jim Trinka and Les Wallace

 

LME019 – How to stay calm at work when under stress and pressure

How to stay calm at work

How to stay calm at work

It is often not easy to stay calm at work. Nevertheless, there are team leaders and managers that amazingly are able to do this. They radiate a sense of calm and composure, even in stressful situations.

Listen to the podcast version

Do you stay calm at work?

I had my difficulties with it when I was working as a manager. But some collegues stayed calm under pressure during times when all others around them seem to lose their heads and become tangled up with their emotions.

So, I started to watch them closely and learn. Nowadays, because of that, I can stay much more calm and composed.

Does it always work? Well – no! But more and more!

What is needed to stay calm at work?

Staying calm is based on self-confidence, clear thinking and optimism. One who goes through life with confidence and optimism will most likely keep his head and stay calm in critical situations as well. Why? Because such a person has internalised a credo like:

„Nothing is as bad as it looks.“

Now, some of you might say:

„Yeah, but this person had it easy in life – no wonder he sees it like that. But for me it’s a different story.“

But that’s commonly not the case. It’s actually not true at all, that these optimistic, confident people had it always easy in life. It’s often quite the opposite.

They have made some hard experiences as well, but they’ve analysed these deep hits over time and processed them.

Analyse previous situations

If you want to become more calm and composed, you have to analyse previous situations where you couldn’t stay cool. For example, situations when you were angry or anxious: situations when you were uncertain and start to doubt yourself.

This postprocessing of previous situations can help you tremendously to become more confident, composed and to keep calm in similar situations in the future.

You decide for yourself on how to react. You will be able to stay in control, and you won’t be driven by emotions like anger or anxiety anymore, which allows you to act and react more composed.

Be self-determined and prepare

In my experience, to be self-determined and prepared for these situations and having options is crucial in order to become more calm and composed.

What else helps you to become more calm and keep a cool head?

My 5 tips on how to stay calm at work

Here are my 5 tips on how you can stay calm if your under pressure. If you feel that you’re reaching a critical point where you might slide back into your old behaviour pattern, or you feel that emotions start to boil over, do the following:

1. Breathe!

„Yeah, great. I’m breathing anyway.“

No, I mean really take a deep breath. If we experience stress or we are overwhelmed by a particular situation, our breathing usually changes: it becomes faster and more shallow. We become tense.

When this happens, just count to 10 in your head and consciously breath deeply in and long out. This will calm you down.

2. Be silent!

Take time to reflect. Keep a distance while being fully aware. Try to get to the point where you simply observe yourself.

3. Take a break!

When you feel you are just about to lose your patience or to fly off the handle and then say something that you will regret later on – take a break the moment you realize that.

During a conversation just ask for a break. Get up and leave the room – for example to use the bathroom. That’s a normal human need. Nobody can object to that, right?

4. If provoked, don’t take it personal!

It is helpful in this kind of situation to simply take it as it were not aimed at you. Of course, that is not always easy, but try to remind yourself: not he, she or something has provoked you – it is you, allowing yourself to be provoked. Just don’t let it get to you. Then you are able to stay calm.

5. Don’t take on every challenge!

Taking on every challenge is a mistake.

This is something that I used to do far too often. Of course: there are situations when you really need to stand your ground and act consistent. For example, during a meeting where your important project is being discussed and a colleague strongly argues against it.

Or, if your manager comes down unreasonably on one of your team members. That’s when you do need to step in.

But you really don’t need to switch to confrontation mode every time you’re under attack. You don’t need to take on every challenge and pick every fight. Sometimes it is already enough, not to listen, to simply ignore things and to don’t let yourself get carried away.

Understand when to stand your ground!

Learn, when to stand your ground, which fights are worth picking and which are not.

And if you decide to get involved, then do it with your full commitment. But don’t let yourself get carried away and react to everything and everyone, because then you’re not self-determined anymore, but driven.

Somebody else is flipping a switch, and you react to it. Don’t do that. Become self-determined and, therefore, confident, calm and composed.

I wish you the best of luck and much success in becoming more confident, calm and composed – and therefore a better leader.

How to become a better manager and leader

If you liked this tips you should read my post on my 3 tips whioch help you to become a better manager. Just click here:

How to become a better manager

The inspiring quote

You have to think of your career the way you look at the ocean, deciding which wave you’re gonna take and which waves you’re not gonna take. Some of the waves are going to be big, some are gonna be small, sometimes the sea is going to be calm. Your career is not going to be one steady march upward to glory.

Alan Arkin

 

LME018 – Onboarding new employees

Today we talk about 3 major mistakes you should avoid when onboarding new employees.

Do you spend a lot of time and money searching for new staff members? Yes? But do you also pay enough attention to train the new hires properly?

I will explain to you the three most critical mistakes during the onboarding process that you really have to avoid.

Listen to the podcast version

Why you should care about onboarding

Recruiting costs can easily reach up to 40% of the annual salary for the job position to be filled. If the new employee is not properly trained after hiring, the employer is really wasting hard cash.

As a leadership and manager coach I noticed this fatal mistake with quite a few of my clients. A lot of effort, time and resources are put into finding suitable candidates, but then the new hires are not being inducted and trained well.

Recklessly neglecting the onboarding process turns out to be a costly mistake, for example when the new employee is already leaving during the probation period, or it becomes clear – far too late – that the person doesn’t really fit in the organisation or the team after all.

Onboarding new employees: 3 major mistakes!

There are three really bad mistakes during Onboarding that I come across time and again and that simply should not happen at all.

1. Onboarding mistake: Poor preparation

When a new staff member is hired, it should be very clear at an early stage what tasks he or she will perform and what the goals will be.

This information has to be stated in writing before the recruitment process begins. And yet, that’s often not the case.

Everything for his or her workspace and tasks should be ready and prepared at the first working day of the new employee. Otherwise, it will be stressful for everybody involved.

„Hello. Remember me? I am the new guy.“

„Ah yes, welcome on board Mr. … ehm, what’s your name again?“

„Newman, Pete Newman“

„Right. Ehm, Judy, could you please take care of Mr. Newman? Show him around and just find a space for him to work, and explain how everything works here – you know where he gets his laptop and how he gets to the cafeteria and everything…“

Argg. That’s not the way.

Have a clear onboarding process

You need a clear onboarding process.

Otherwise, the new team member will feel completely out of place. He or she will feel like a foreign body that doesn’t belong. That’s demotivating. Check out here how employee motivation really works.

When there’s no clarification about the induction process, even the existing staff members will be overwhelmed, because nothing is prepared and no time and resources have been allocated for the induction and support of the new employee.

2. Onboarding mistake: Responsibilities are not clear!

Every employee has a manager. The manager is responsible for the onboarding process!

Of course, the HR Department can support and help with the onboarding process, but basically onboarding has to be performed by the respective leading manager.

The responsibility lies with the manager!

He has to overlook the Onboarding steps and – most of all – has to take the time for the new employee.

Like almost everything with leadership: this task is very important. As a manager you have to do it.

Even important customer meetings or other management tasks have to come in second.

“Yeah, but our important client had requested this meeting on short notice. So, I simply didn’t have the time for the new staff member…”

“Yeah, but the board requested a very urgent consultation.”

No: There is no

„Yeah, but…“

What has priority? What is really important for you as a manager? Give the new employee now the time and appreciation that he deserves – and that he also very much needs in the beginning to become part of your team.

Support him or her to build up confidence quickly. This includes providing the opportunity to quickly socialize and integrate into the team and to become a valued and respected team member. Your new employee needs to learn about the corporate culture and thats true een if you have a small company.

He needs to know what is expected of him, and he needs to develop the feeling that he makes an important contribution to the organisation. Communicating this, that’s your job as his or her new manager.

3. Onboarding mistake: Insufficient Feedback

Most organisations imply a probation period. Often it lasts for 6 months. But mostly they don’t make good use of this probation time. Despite the first months are crucial.

Make it clear to your new team member, what you expect from him or her and what goals should be achieved. Very important in the beginning: give sufficient regular feedback during onboarding new employees.

Where does he or she stand?

How can an employee develop and become better, if he doesn’t know how good he is and whether or not he’s meeting the expectations?

It shouldn’t happen, but it might happen, that an employee doesn’t perform as expected. In that case, you have to let him or her go, despite all efforts made on both sides.

The probation time

This is why there’s a probation period. But it also means, that you have to make the most of the probation and take the time to talk to your new employee regularly. Help him to understand the goals and expectations and to live up to them.

Don’t tell him or her what you expect only at the end of the 6-month probation. That’s just not fair.

Give regular feedback!

Arrange for a feedback-meeting every other week or once a month.

Give feedback, tell your new team member how well he or she performs and offer support and additional training if necessary.

These meetings can also be used to agree upon short-term goals. Goals that the employee should reach in the following weeks to become a full member of the workforce after the probation.

Unfortunately, many managers don’t do that. And what happens, is: the manager didn’t have time for the new employee and now – close to the end of the probation period – a decision has to be made, whether to keep him in the company or not.

„Shall we keep the new guy or not? Well, I haven’t had much time in the last months… It would be a bit unfair to let him go now, just because I didn’t have enought time for him …“

That’s correct. But what was actually unfair is that you didn’t pay attention to and you didn’t take care of your new employee.

Use the probation time correctly!

What happens often is: You employ a lousy candidate after the probation time because you did not have a proper onboarding process.

At least in some countries liek Germany: You can’t get rid off him that easily after the probation period is over – just because of legal rules.

Therefore always consider: set up regular meetings with your new employee already from the first day to provide feedback – preferably every other week.

If you do that, you will know latest after 6 months whether working together makes sense or not. There will be no surprises or disappointments. Even if you decide not to keep the new employee or even let him go already during the probation period, at least you gave him a fair chance by providing feedback and support.

Checklist Onboarding

I prepared a check list that guides you through the entire Onboarding process.

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my 4 page onboarding checklist

checklist onboarding new employees

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The inspiring quote

“I truly believe that onboarding is an art. Each new employee brings with them a potential to achieve and succeed. To lose the energy of a new hire through poor onboarding is an opportunity lost.”

Sarah Wetzel

LME017 – How to become a better listener and improve as a leader

Become a better listener

Become a better listener
Image: jgroup/ Resource: www.bigstock.com

As a true leader you should always ask yourself how to become a better listener. Because, the majority of employees consider their boss to be a poor listener. This is the result of a study performed by several organisations including the Business Executive Academy in Germany (Akademie für Führungskräfte der Wirtschaft).

This is tragic. It undermines employee motivation. Many misunderstandings throughout the daily routine could be avoided – if only managers were to take the time and simply listen.

Listen to the podcast version

Why do managers have such a hard time becoming a better listener?

Managers want to be perceived as the engines of progress. Activity may frequently give them a false sense of being in control.

But listening is erroneously equated with passivity and submissiveness. Consequently, many managers focus more on talking than on listening. In the end, what the boss says is what goes. This is a big leadership mistake.

Bad decisions are made by those who do not listen

Many managers only listen briefly and are much too quick at forming an opinion. They suffer from “premature evaluation“. They make rushed evaluations of an employee’s statement, instead of absorbing the presentation, asking follow-up questions and comprehending the matter.

Are you one of these? Do you evaluate and react while your employee is still speaking? You are then actually no longer truly listening to them. You are already distracted by your own thoughts about the solution to the problem, and are not taking the time to understand the problem in detail. Misunderstanding and poor decisions are then already pre-programmed.

Getting to the bottom of things

When something goes wrong in your company, you should not only focus on facts and figures. You must to get to the bottom of things.

You will only do so if you understand the underlying emotions and motivations of the people involved. This requires that you ask and listen – but do so correctly.

Not an inquisition – but an inquiry instead

When listening actively, you are engaged with your conversation partner. You express empathy and address the other person with an open mind. It’s important to follow up on things that are not clear, and attempt to understand and address the other person’s feelings. You make an inward attempt to place yourself into the situation of the speaker.

It is important in this case to keep your opinion to yourself. Do not allow yourself to become agitated by allegations and criticism. Keep in mind:

Listening is not the same as agreeing!

3 tips how to ask questions the right way

Asking questions can be a great method helping your employees. But you need to use questions carefully. Otherwise they can be counterproductive.

1. Short questions in rapid succession

If you shoot short questions in rapid succession your employees may feel like being interrogated by a police officer. They feel pressed into a defensive position and feel like they are under attack. In this way, they become more and more afraid and threatened.

If a project went wrong and you talk to the responsible person, avoid asking short questions in rapid succession. One question is enough. Allow your employee to think and to find the right answer.

If you strive for becoming a better listener, don’t fire short questions in rapid succession.

2. Don’t trigger fear with your questions.

The shorter you formulate your question, the more pressing it is perceived by your employee. So, avoid this kind of questions. Instead of

“Why did you make the decision this way?”

You can ask:

“I can see that you were in a tough situation. What led you to make the decision this way?”

You see? Asking in that way does not trigger fear and defence.

3. Talk about the background of your question.

Sometimes it can help to introduce the background of your question with one or two sentences before asking the actual question. In the end you ask these questions in order to help or to understand – not to frighten, to demotivate or to frustrate.

Questions can be a terrific way to get others to think. But this will only work if your counterpart feels that you respect him. Therefore, never ever act like a threatening inquisitor!

Gaining trust and understanding

In order to learn how to become a better listener try to understand the emotions and motivations of difficult employees.

  • Why does the employee behave this way?
  • What is his perspective of things?
  • What is his reality?

Avoid jumping to conclusions. Good listeners express appreciation and can then gain trust. They become aware of valuable information, are better able to assess situations and can therefore avoid misunderstandings.

6 important tips for how to become a better listener

  1. Don’t just go through the motions, but actually listen attentively.
    Become completely engaged with your conversation partner.
  2. Without fail, good listeners also ask good questions. Ask for more information if you did not understand something. Repeat what you understood in your own words. Keep it brief when doing so.
  3. The ability to listen actively takes time to develop. Accept that you will feel somewhat clumsy and uncomfortable in your role in the beginning.
  4. Confidence is needed to approach others and to listen to them in an open and candid manner. Precisely in your role as the boss, you must have the ability to absorb unpleasant matters or criticism without having to justify yourself on the spot.
  5. Learn to appreciate pauses. Resist the urge to say something when a pause occurs. One of my bosses once told me: “You lead a conversation by saying little.”
  6. Are you one who tends to speak too much? Then you must accept the following:
    Generally, your counterpart is much more interested in himself and his desires and problems than in your desires and problems. Therefore: Speak less – and speak less about yourself. Place your counterpart at the center of attention, regardless whether this is customer, a colleague or an employee.

Further tips on how to become a better manager

If you liked this tips you should read my post on my 3 tips whioch help you to become a better manager. Just click here:

How to become a better manager

How to become a better manager

 

The inspiring quote

“Listen with curiosity. Speak with honesty. Act with integrity. The greatest problem with communication is we don’t listen to understand. We listen to reply. When we listen with curiosity, we don’t listen with the intent to reply. We listen for what’s behind the words.”

Roy T. Bennett